Quick Note on Millennial Media
A few years ago, a small publicly traded company called Millennial Media acquired another small company called Jumptap for $225M. It was a fun affair – Millennial Media had started to experience some sales slowdown and was looking for growth opportunities. The company’s shares had dipped significantly since IPO hayday already – traded at $9 per share.
Moving forward to today, AOL completed its acquisition of Millennial Media for about $240M. AOL, it ought to be noted, itself was sold recently to Verizon. Had the Jumptap shareholders, for whatever reason, held onto their shares till this week, they would’ve lost about 80$% of their value. Excellent.
Aside: My colleague reminded me that there is a winner from all this disaster – the advisors. Given a 2-3% transaction fee, the bank(s) walked home with about $4-6M per gig. Enough to at least buy a few bottles and trips to Hawaii. Mahalo.